Precious Tots Toymaker is planning the launch of a new toy line. Implementation would require purchasing new equipment worth $900,000 plus installation costs of $75,000. Depreciation on the equipment will be based on the MACRS 3-year class rates such that the applicable rates are 33.33%, 44.44%, 14.82%, and 7.41%. In addition, the new line would require an increase in inventory of $300,000 and $150,000 increase in accounts payable. Management expects sales of 200,000 units in Year 1, 250,000 in Year 2, and 150,000 in Year 3. Sales prices are expected to be stable at $15 per unit. Fixed costs of production are estimated at $175,000 and variable costs are 60% of sales revenue. Upon the project's completion the investment in working capital will be recovered and the equipment purchased will have a salvage-value of $150,000. The company's cost of capital is 9% and its state-plus-federal tax rate is 25%.

Calculate the initial investment, operating cash flows, and terminal cash flow for this expansion project.